How to Improve a Business: 10 Boards of Directors

Category: Business 38 0

The main function of the entrepreneur, after the effort to start a business, is to manage the company. Many entrepreneurs fail in this regard, by not knowing how to grow their business, or improve sales, production, finance, marketing, etc. In this article we will see some tips on how to improve a business.

Business

How to improve a business

The administrator must consider various points of improvement within the company. To the question of how to improve a business, I want to guide you to the most effective ways:

  1. KEEP TRACK AND CONTROL OF OPERATIONS

One of the most important aspects of how to improve a business is to record sales, purchasing, and cost operations.

Many businesses lose track of where the money goes; they do not know how much they sold, how much they are paying for purchases made, how much is the sum of their costs (rent, salaries, water, electricity, etc.)

  1. USE AN OPERATION CONTROL SOFTWARE

It is not advisable to keep track of your operations in pencil and paper. This leads to errors, disorganization, and loss of control in the administration.

The recommended way to improve the administration of a business is to use a control software. For businesses with a high volume of direct sales, we recommend downloading a POS (point of sale) such as osPos, which allows you to register sales quickly and on a computer for more help contact us https://rightcorporateservices.com/

  1. TAKE IMPORTANT ACTIVITIES ON PAPER

To improve the business, some companies need to keep a paper record that supports processes or activities carried out.

For example, if you have a warehouse with a large investment in inventory, it is advisable to create a format where inventory entry and exit is registered, with date, name, quantity, products, entry or exit, and signature.

Likewise, companies must submit their annual tax return, and must keep track of all invoices issued and received, in case of audits.

  1. CREATE VARIOUS FORMS OF COMMUNICATION WITH THE CLIENT

One way to improve a company is to open the channels of communication with the client, in order to increase contact, service, attention and sales.

Classic businesses base their entire communication strategy with a telephone number and an address. Today, there are other ways that force businesses to adapt, for example:

– Have an email

– Have a Facebook and twitter account

– Create a website

– Optimize the website to rank in search engine.

– Online chat

– Use of Skype.

  1. EXPLAIN THE CONCEPT TO THE CLIENT

A common business mistake is to believe that an elegant business name, different or rare, will attract customers. This is not accurate.

It is true that a marketing strategy may include using a different business brand name, such as companies that use English words for their business (for example, McFry´s).

However, the concept of what this business is is not clear to the visitor, and it is very likely that he will not even enter the store. Therefore, a tip to improve a business is to create a statement of what the business is and what makes it different from others.

In the example, the concept is an Irish bar, so next to the name, we must clarify what we are in a simplified way: McFry’s Irish Pub, Irish Bar

  1. IDENTIFY YOUR COMPETITIVE ADVANTAGE

Regardless of the size or type of business, everyone should know what makes it different from the others (what makes it better). In fact, this should have been established before starting the business.

This is the concept of competitive advantage, the fact of establishing vs. my competition, because I am better or different, making the business more attractive. To manage a better business, identify the benefit that makes it better.

Note that I speak of benefit and not characteristic. A benefit is something that is tangible for the customer, what he receives when buying at the establishment.

For example, following the Irish McFry’s bar, your competitive advantage may be to create an atmosphere of Irish relaxation in your city (benefit), by the style of the bar, music, Irish-style drinks and rock bands (features). This advantage must be made known within your advertising to attract your customers.

  1. DO SMART MARKETING

Another common mistake when managing a company is to use money in marketing without knowing the return on investment; that is, without knowing if what is being spent is generating economic benefits.

A practical way to do this is to create marketing strategies that are low cost and high impact. One of these ways is guerrilla marketing, that is, to present itself as an innovative business by using advertising that is different from what is customary.

For example, that the McFry´s bar created as a spectacular advertisement outside its business, a giant beer in the style of an Irish glass. This is something different that impacts the visitor, and creates an attractiveness to the business.

  1. IDENTIFY THE MOST IMPORTANT CUSTOMERS

Not all customers are equal. The saying of treating all clients well, has changed, towards treating the most important clients better.

One way to make a profitable business is to analyze the sales data, and identify the clients that represent 80% of our sales.

This applies to specific clients (for example, Pedro Perez), or to a specific type of client (for example, that the best clients in the bar are adult men with partners). Remember that most of your customers will represent 20% of sales. Following the example, let’s say that McFry´s bar observes that it receives many young people, but the average bill is $ 100 pesos.

And when he receives men over 40, his accounts are $ 500 pesos average. Therefore, more attention should be given to clients over 40 than to young people.

  1. INCREASE PROFITS BY LOWERING COSTS

The general idea of ​​increasing profits is through increased sales. However, an alternative is to reduce costs, which are the most important cash outlays of the company.

One way to improve the business is to create an ABC analysis of costs. That is, categorize costs in order to find which ones are the most important, and reduce them.

Costs A, will be those that represent 80% of the total costs (generally include income and salaries). B costs represent 15% of total costs, and C costs 5%.

  1. TRAIN IN BUSINESS

Many people study a master’s degree to improve their business. However, the costs of a master’s degree are high for small entrepreneurs. An alternative is offered in 100 Business, through online business courses, which you can take from home, helping you to train in business at a much lower price than the classic study.

Related Articles

Add Comment